Salford City Council has approved plans by Sky Properties and Chester Developments to develop housing on 10 acres of disused industrial land off Green Lane, Eccles.
Sky Properties previously submitted plans to build a multi-million pound energy-from-waste plant on the land but this was rejected by the city council and an appeal and recourse to judicial review was withdrawn after consultation with Salford City Council.
The housing proposal funded by Investec Bank is for a mix of 40 two-bed properties, 92 three-bed homes and eight four-bed properties with open space beside the Bridgewater Canal.
Anthony Hirsch, director of Sky Properties, said he had been in early discussions with several housebuilders and intended to select a construction partner in the near future. Preparatory work on the site is underway and it is hoped that construction will begin in early 2014.
Hirsch said: "I've always been a firm believer in the potential of Eccles and the Green Lane site. We've kept this whole process going over many years by strong management and strong relationships with Salford City Council and I'm delighted to secure permission for a sustainable development.
"We want to produce a scheme to benefit the local community on land that has stood empty for too long and look forward to getting spades in the ground."
Sky Properties acquired the land off Green Lane in 2003 as the former home of the Mitchell & Shackleton engineering business, which had been based at the site since 1908 when Ernest Mitchell and Edwin Shackleton united to create what became a globally successful crankshaft manufacturing and repair business.